Everest Kanto to raise USD 35 million

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Mumbai, Oct 3: Mumbai based CNG, cylinder maker Everest Kanto Cylinder Limited will raise USD 35 million through the issue of Foreign Currency Convertible Bonds (FCCB) in Singapore stock exchange.

The fund will be used for company's dometic expansions, investments in JVs and for potential overseas acquisitions, the company told the Bombay Stock Exchange (BSE) today.

FCCBs have launched at an initial conversion price of Rs 303.36 per share and will be convertible into the ordinary shares of the company.

The bonds, which have been priced today, are expected to close on or about October 10. Citigroup Global Markets is the Sole Lead Manager for the offering.

The Bonds are expected to be zero coupon and will carry a yield to maturity of 7.25 per cent per annum.

According to the communique, the bonds will also carry a reset feature as per which the conversion price will be adjusted on the record date on October 9 if the average market price for 20 consecutive trading days prior to the record date is less than the conversion price.

The company had reported a 39.91 percent hike in net sales to Rs 111.31 crore in the first quarter of the fiscal. Total volumes grew by 33 per cent at 140000 cylinders.

Company's three manufacturing plants in the country are located at Aurangabad, Tarapur and Gandhidam.


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